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Editorial Sell or Scrap the Government's Ships AY by day the waste in the operations of the United States shipping board and Emergency Fleet Corp. goes on. The people pay the bill while bureaucrats in Washington play at the operation of steamships. The department of commerce has just reported that less than 10 per cent of the privately owned steamships under the American flag are laid up at the present time, while over three-quarters of the government owned fleet is idle. This simple ratio tells the whole story. The government is able to operate only a small fraction of its fleet; never- theless it is losing millions of dollars a year and probably will proceed to lose more now that some of the “experts” down in Washington are flirting with rate wars, proposing to withdraw from freight confer- ences which have proved absolutely indispensable to profitable ship operation all over the world. Making a Bluff at Selling TUNG by the almost universal criticism of its policies and with the hope of allaying public indignation over its tremendous and inexcusable losses, the shipping board is making a bluff at disposing of some of its few odd millions of obsolete tonnage. The entire fleet is being advertised for sale and Chair- man O’Connor has explained that bids will be invited on the basis of unrestricted operation of vessels to be sold by the board or on the basis of guaranteed operation. Under the latter plan, it is stated, the pur- chaser enjoys a reduced price but in return must guarantee to maintain a specific service for the agreed term. ‘These ships are being advertised for sale un- der the terms of the merchant marine act. The ap- pearance of these advertisements, Chairman O’Connor has explained, will not indicate any change of policy by the shipping board. Of course not. A change in policy might result in selling some of these worth- less hunks. It is far better from the political stand- point that they be kept, so as to furnish jobs for caretakers, inspectors, naval architects, engineers, re-. furbishers and the hoard of other gentry who are fattening on the government’s merchant marine ex- penditures. A special effort, it is understood, is going to be made to sell the Welland canal size steamers which were built during the war. A beneficent government is offering these hulks to American owners first. Everybody knows it is practically impossible to operate these boats profitably because their draft is too deep for the West Indian and other trades which require small boats and their coal consumption per ton of revenue cargo altogether too much for transoceanic work, : A great many of these lakers and a lot of other 103 - this means. vessels now on the books of the shipping board are simply junk. On another page is a letter from Senator Willis, expressing his regret over the possibility of the government being obliged to get rid of this fleet. Get Busy and Scrap the Junk Any American citizen regrets that such a step is necessary, but the honorable senator, whose views on most business questions are sound, should realize that these ships were built to fit a war emergency and that the emergency is past. Many of these ships cost the gov- ernment $220 a ton. Today they aren’t worth $20. In fact, the government itself recently sold some for $12.50 a ton. Now when a business firm faces a situation of this sort it does just one thing—liquidates. To liquid- ate means to sell for what you can get and start over again. Very few government officials understand what Facing facts is not one of the virtues of politicians. No decisive action can be expected as long as our legislators are influenced by the blatant clamor of small groups of their constituents who with hopes of selfish individual gain, take a dog in the manger attitude toward the sale of these ships at whatever prices they will bring. Most public men are successful in the conduct of their own affairs and if they used the same judg- ment in running the nation’s business as they do their own they would stop this extravagant ex- periment. Even politically, government ownership has run its course and definite steps now to put a stop to it would be popularly received by a vast majority of all the people. Sell the Fleet—Get Out OMMISSIONER Plumber himself has stated that the expenses of operating the government mer- chant fleet could be reduced $10,000,000 a year. It could be. by private vessel owners and operators who could bring the full weight of competition to bear on their costs. But reduction of expenses is practically impossible in government departments. Senator Willis has indicated in his letter he would like to have a con- structive suggestion. Here it is. Break up the hundreds of worthless government vessels and sell them for scrap. Sell the others under the hammer for what they will bring as quickly as possible. Abolish the Emergency Fleet Corp. Repeal those sections of the LaFollette act which prevent American operators from competing with foreign lines. Do the same with other merchant marine acts and the Panama canal act. Give protection to American shipbuilders and American shipowners just as all other American industries are protected. The net result would be as certain as the sunrise—prosperity for American shipping.